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Central Banks Face New Balancing Act With Their Huge Asset Piles

As officials juggle market expectations and governments’ preferences for cheap borrowing, it could take generations to unwind quantitative easing.

Biden Open To Options On Spending As Congress Takes Over
Photographer: Stefani Reynolds/Bloomberg

Central bankers around the world are mulling the future of their massive bond-buying programs in a post-pandemic world, knowing that with big balance sheets come big expectations.

The Group of Seven developed economies piled on about $7 trillion in debt last year as they spent heavily to fight the pandemic and prop up their economies. Central banks ended up owning much of that new debt, according to Bloomberg Economics.